6.4.5 Recoverable Debts - Compensation
Summary
There are different types of compensation related recoverable debts. This topic contains basic information on what they are:
- debts raised against the compensation recipient,
- debts raised against compensation payer or insurer,
- debts raised against compensation payer or insurer who contravene SSAct section 1184D, and
- compensation arrears debts.
Note: These provisions came into effect from 20 September 2001. Prior to this date debts were recoverable under the previous legislation.
Debts raised against compensation recipient
SSAct section 1178 (lump sums) and section 1180 (periodic payments) are the notice provisions under which a recoverable debt can be raised against a compensation recipient under SSAct section 1184F. Debts will usually only be raised against a compensation recipient where recovery cannot be made from a compensation payer or insurer. Debts must not be raised against a compensation recipient where a compensation payer or insurer has contravened SSAct section 1184D.
Act reference: SSAct section 1178 Repayment of amount where both lump sum and payments of compensation affected payment have been received, section 1180 Repayment where both periodic compensation payments and payments of compensation affected payment have been received, section 1184D Offence to make compensation payment after receiving preliminary notice or recovery notice, section 1184F Debts resulting from notices under section 1178 or 1180
Debts raised against compensation payer or insurer
SSAct section 1184 is the notice provision under which a recoverable debt can be raised against a compensation payer or insurer under SSAct section 1184G.
Act reference: SSAct section 1184 Secretary may send recovery notice to compensation payer or insurer, section 1184G Debts resulting from notices under sect 1184
Debts raised against compensation payer or insurer who contravene SSAct 1184D
Section 1184E is the provision under which liability to the Commonwealth is established if a compensation payer or insurer contravenes SSAct section 1184D. The debt is recoverable under SSAct section 1184H.
Act reference: SSAct section 1184D Offence to make compensation payment after receiving preliminary notice or recovery notice, section 1184E Liability of compensation payer or insurer to pay the Commonwealth if there is a contravention of section 1184D, section 1184H Debts resulting from contravention of section 1184D
Policy reference: SS Guide 6.4.2 Overview of Recovery Rules
Compensation arrears debts
Where the income test concession applies to a compensation recipient who receives arrears of periodic compensation and the CAP is reduced under the relevant rate calculator, then the debt is recoverable under SSAct section 1184I.